Property Taxation by States

Part
01
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Part
01

Property Taxation - Part 1

Alabama, Alaska and Delaware will not see any changes to the homeowner's property tax in the coming months. However, Hawaii and Idaho will see some changes in their property tax bill as notices have been mailed to residents of these states that outlines the changes to come. The attached spreadsheet has the details.

Summary of Findings

  • Alabama and Alaska will not be seeing any changes made to their property tax bill. While several states have declared their intention to make changes to their property taxes, Alaska and Alabama were not mentioned among them.
  • In the State of Delaware, there are no proposed changes to homeowner's property tax. However, the Indian River School District has indicated that the new rate for school property tax is $3.035 per $100 of the assessed value of the property. This represents a 3% decrease from 2019.
  • Hawaii, on the other hand, will see an increase in some but not all counties. The counties to be affected are Maui and Honolulu only. As a result of the increase, residents will pay approximately 1% more on their property taxes in 2020.
  • In Idaho a tax boost is proposed which will see residential property owners paying 8.7% more. This increase is justified by the fact that property values have increased $283,000 to $330,000.

Research Strategy

In this research, we found information pertaining to property taxes in the local newspaper as well as on the website of the state or county. In the case of Delaware, it was found that the Indian River School District board made a decision to change the property tax of schools. Although this would directly impact the residents, there was no direct impact or change to the homeowner's property taxes. Therefore, this was excluded from the findings. The details of our findings are in the attached spreadsheet.
Part
02
of seven
Part
02

Property Taxation - Part 2

Indiana, Kansas, Kentucky, Louisiana, and Maine do not have any potential upcoming changes to their property taxation to be with assessment limits.

The information has been inputted in appropriate column of the spreadsheet document.
Part
03
of seven
Part
03

Property Taxation - Part 3

No evidence shows support about any potential changes is coming soon to their property taxation to be with assessment limits for the states of Massachusetts, Minnesota, Mississippi, Missouri, and Nebraska. A detailed summary of our findings is presented in the attached spreadsheet.

Massachusetts

  • On the official website of Massachusetts, they provide a guide about the state's property taxes. The website provides definitions, exemptions, and abatements.
  • Massachusetts applies levy, which is the overall amount of revenue a city or town raises through the property tax.
  • Not everybody pays the same tax rate in Massachusetts — it will depend on the city or town and classification of the payer.
  • According to Massachusetts' official government website, no evidence shows support for any potential changes is coming soon to their property taxation to be with assessment limits.

Minnesota

  • According Property Tax Law Summary 2019 which provides a summary of property tax-related law changes that were enacted during the 2019 special session of the Minnesota Legislature, no evidence shows support for any potential changes coming soon to their property taxation to be with assessment limits.
  • This summary shares about their general provision, which is Data Sharing Permission for the Market Value Exclusion on the Homestead of Veterans with a Disability.
  • It also shows classification and exemption updates specifically on the agricultural sector.

Mississippi

  • Mississippi Tax Commission website provides general information concerning a frequently asked question about taxes administered by them.
  • It composes of property definition, where it taxes go, who values the property, and other FAQs that are related to property taxes.
  • A bill is nearing its passage in Mississippi Legislature which will cut property taxes for farm owners but will leave owners of home, cars and commercial property higher tax rates.
  • House Bill 1456 would alter a formula setting the taxable value of agricultural land in Mississippi to mandate a 16.67% decrease in value over time.
  • The bill is being pushed by the Mississippi Property Tax Alliance, a group of farmers in Leflore and Holmes counties who say taxes are too high. Others say farmers and timber owners already get a break on taxes.
  • If the bill passes, it would be the second success for the alliance. (Source 3)
  • As of 2019, no evidence shows support of any potential changes is coming soon to property taxation to be with assessment limits in Mississippi.

Missouri

  • Missouri's Department of Revenue official website has the latest new and updates. These include due date, tax rates changes, Missouri standard deduction, and new funds and tax credits.
  • The website also has a formula for first-time home buyer deduction and federal reserve bank interest subtraction.
  • No evidence shows support about any potential changes is coming soon to their property taxation to be with assessment limits on Missouri's Department of Revenue official website.

Nebraska

  • According to the report by Omaha World-Herald, Legislative Bill 103 unanimously passed in March to help rein in the growth of property taxes.
  • Sen. Lou Ann Linehan of Omaha, the bill's sponsor, said that her goal was to help voters see what's causing Nebraska's property taxes to rise.
  • Urban senators may feel their constituents are not being treated fairly under LB289–urban taxpayers will pay much of the higher sales taxes paying for property tax relief. Still, most of the increased school aid and property tax relief will go to rural areas. (Source 7)
  • No evidence shows support about any potential changes is coming soon to their property taxation to be with assessment limits.

Research Strategy:

We started our research by looking at government websites for each state. We found each state's information on property taxation. We also searched for new and updates regarding property taxation and other tax laws for each state. We didn't find any evidence which shows support about any potential changes is coming soon to each state property taxation to be with assessment limits for any state.
Part
04
of seven
Part
04

Property Taxation - Part 4

Nevada has plans of potential changes to their property taxation to have assessment limits, while North Dakota, North Carolina, New Jersey, and New Hampshire do not. This information was updated in rows 29-31, 34-35, column C-D of the attached spreadsheet.

Nevada

  • There are plans for limits on Nevada Property Taxes.
  • The cap will allow for an owner-occupied single-family residence to increase by no more than 3% per year, regardless of changes to the valuation of the home, unless the change in value is directly related to improvements in the home.
  • For all other types of owned properties, the cap applied is related to the average percentage of change in the value of a county over the current year and the previous nine years, or two times the increase of the CPI of the year.

New Hampshire

  • There is no plan for an assessment limit on property taxes in New Hampshire.
  • This is shown by the 2019 property tax increase of up to 27% in some cases.
  • There is no limit for property tax assessments because New Hampshire relies heavily on the taxes of properties.

New Jersey

  • There are no plans to enact a property tax assessment limit in the state of New Jersey.
  • There was a recent bill proposition published in May 2019 that concerns property taxes with no mention of adding an assessment limit.

North Carolina

  • North Carolina does not have plans to impose a property tax credit limit.
  • In 2019, there was a reappraisal in order to equalize the tax burden among property owners and among all classes of property.
  • There are plenty of tax property relief programs including Elderly or Disabled Exclusion, Circuit Breaker Tax Deferment Program, and the Disabled Veteran Exclusion Program.

North Dakota

  • North Dakota does not have plans for a property tax assessment limits.
  • North Dakota, as a whole, relies on property taxes to fund the local government.
  • There was a recent change to the proposals of the North Dakota Property taxes that only affected businesses.

Research Strategy:

For Nevada:
All our research among credible sources which included government publications stated that there has been limits on property taxes since 1979, although they are making reform changes to it, to make it less complicated starting in 2020.

For New Hampshire:
We determined there were no plans for a property tax assessment limit in New Hampshire due to the fact that there was a recent steep increase in property taxes. There are no limits in place and there was no mention of residents wanting a limit. Rather, they just wanted a better explanation of the types of increases they are facing. New Hampshire also relies heavily on their property taxes, as they have no sales tax or other forms of taxes to aid in government workings.

For New Jersey:
We determined there are no plans to enact property tax assessment limits in the state of New Jersey because of the lack of an increase in property taxes over the past years. We also based it on the fact that New Jersey relies heavily on its property taxes to aid with government affairs and the fact that there was a recent bill published in May 2019 about the property tax system that does not include any reform on the assessment limit.

For North Carolina:
We determined that North Carolina did not have plans to implement a property tax assessment limit because of their tax relief programs in place as well as the fact that there were no mentions of a tax assessment limit within credible sources other than the already established rate limit. In 2019 there was a reappraisal in order to equalize the tax burden among property owners and among all classes of property in North Carolina. But outside of this, there was no mention on any assessment limit.

For North Dakota:
We determined that North Dakota does not have plans for a property tax assessment limit due to the fact that North Dakota is reliant on its property taxes to aid government affairs. There was also a publication that included recent and proposed changes to tax bills in North Dakota but a property tax assessment limit was not included.

Part
05
of seven
Part
05

Property Taxation - Part 5

Ohio, Pennsylvania, Rhode Island, South Dakota, Tennessee, and Utah will see their property taxes changing in the coming months. The attached spreadsheet contains detailed findings.

Summary of Findings

  • The state of Ohio will have changes coming to their property tax. This is so as the law states that there should be an assessment of the value of homes every 6 years. As a result, property owners have been receiving letters stating that their properties have increased in value by 20%.
  • Pennsylvania too will see an increase in their property tax. This is the case since the Office of Property Assess has revised the market values for over 470,000 homes. As a direct consequence, over 389,000 home values will increase but approximately 81,000 will decrease.
  • Rhode Island plans to bring back the homestead exemption. They conducted a revaluation of properties which is mandatory for the state. Therefore, the completion of that exercise, the property tax rate will increase and some properties of a particular value being exempt at 28% and 40%.
  • In South Dakota, a number of cities will be raising their property tax by as much as 2.4% in 2020.
  • In the case of Tennessee, the Jonesborough Board has approved a change to the property. This change will see the tax rate moving from $1.13 to $1.20 per $100 of property value.
  • Cache County in Utah has plans to increase property taxes in the coming year. The increase is likely to be 10% in keeping with the increase in property value experienced in the county.
Part
06
of seven
Part
06

Property Taxation - Part 6

Vermont, Virginia, West Virginia, and Wisconsin have no potential changes coming soon to their property taxation. However, Wyoming, Washington, and the District of Columbia will have changes to their property taxation in the coming months. The attached spreadsheet has the findings.

Summary of Findings

  • Vermont, Virginia, West Virginia, and Wisconsin have no potential changes coming soon to their property taxation.
  • Seniors in the state of Wyoming will experience a change in their property tax in the coming months. Two separate bills were passed in July 2019 that will affect this group of persons. Based on one of these Bill, Seniors 65 years and older will experience tax exemption.
  • The other Bill is an amendment to the refund program. This amendment has restricted the persons who can benefit to those persons who are 65 years and older.
  • Both bills should start to bear fruit in the pockets of the Seniors until next year. Both bills state that the claimant must make a submission by March in the case of the exemption and June in the case of the tax refund program.
  • According to the Beachcomber, some taxpayers in Washington will enjoy property tax relief in early 2020. The change to be experienced by these taxpayers is as a result of a new law that has changed the income threshold for property tax exemption.
  • In the District of Columbia, property taxes have been reassessed to reflect the current market. Over 200,000 properties have been reassessed as of January 2019 and will be taxed on those new values by March 2020.

Research Strategy

In search of the potential changes coming soon to property tax limits in Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming, and the District of Columbia, we searched state legislation websites and press releases. We assumed that these were the best places to get such information out to the public and therefore would be the likely sources of information for this study.

For Wyoming, Washington, and the District of Columbia, we found information which suggested that there will be changes to their property taxes. We then explored each change to see whether they have already taken place or are likely to cause an impact in the future. In the case of Washington, and the District of Columbia, it was clear that the changes would take place in 2020. However, the bill passed for Wyoming stated that the bills became effective in July 2019 which suggested that the changes are already in effect. However, upon reading the details of the bill, it was found that the changes can only take place in the coming months but precisely between March and June 2020.
Part
07
of seven
Part
07

Property Taxation Limits

The levy ceiling prohibits total property tax collections from exceeding 2.5% of the fair market value of all taxed property, while the levy limit caps the annual increase in collections at 2.5% plus new construction.

Common Features

Differences

  • Compared to assessment limits, a rate limit is a more neutral vehicle for tax limitation.
  • Each limit has a somewhat different goal.
  • Assessment limits are concerned with tax burdens which rise in the absence of any intervention; rate limits restrict adopting a tax increase.
  • Assessment limitations only allow a tax increase.
  • Rate limitations only permit them when driven by rising housing values.
  • A levy limit permits greater variation but all within the context of a hard revenue limit.

Examples of states' limitations

Assessment Limits
  • In New York City, assessment limits do not reset upon sale at all.
  • This means that older residences experience far lower tax burdens than similarly situated new construction.
  • Colorado caps residential property at no more than 45% of statewide assessed value.
  • In Iowa, combines a statewide assessment limit with an "ag tie".
  • "Ag tie" implements an assessment rollback if residential property values in aggregate rise faster than agricultural assessments or vice versa.
Levy Limits
  • Massachusetts' proposition 2 ½ imposes both a levy ceiling and a levy limit, in the state's terminology.
  • The levy ceiling prohibits total property tax collections from exceeding 2.5% of the fair market value of all taxed property, while the levy limit caps the annual increase in collections at 2.5% plus new construction.
  • In Alaska, limits annual revenue to $1,500 per resident.
  • Michigan adopted a rollback that prevents collections from growing faster than the inflation rate.
Rate Limits
  • In Texas, school districts are limited to $10.40, or 66.67% of the previous year's rate plus 0.4 mills if the previous rate was lower than 15 mills.
  • In Georgia, School districts are limited to 20 mills, excluding debt service.
  • The 20 mill limitation shall not apply to those school systems which are authorized on 30 June 1983.

Your Research Team Applied The Following Strategy

We initiated my research by looking for the definition of each category; this would help us to compile the difference and common of the three categories. We found out that the three of them are legal limits, and exists in states of Arizona, Arkansas, Colorado, Illinois, Michigan, Montana, New Mexico, Texas and District of Columbia and the difference is each limit has a somewhat different goal. Then, we search for examples of each state's limitations and providing the difference from one state to another. Therefore, we found an older source than two years but it provided us with an example of a rate limit of Georgia for the year 2017.
Sources
Sources

From Part 03
Quotes
  • "House Bill 1456 would alter a formula setting the taxable value of agricultural land in Mississippi to mandate a 16.67% decrease in value over time. "
  • "The measure is pushed by the Mississippi Property Tax Alliance , a group of farmers in Leflore and Holmes counties who say taxes are too high. Others say farmers and timber owners already get a break on taxes. "
  • "If the bill passes, it would be the second success for the alliance."
From Part 07
Quotes
  • "Compared to assessment limits, a rate limit is a more neutral vehicle for tax limitation. "
  • "In New York City, assessment limits do not reset upon sale at all. These means that older residences experience far lower tax burdens than similarly situated new construction. "
  • "Colorado caps residential property at no more than 45 % of statewide assessed value."
  • "Massachusetts' Proposition 2 ½ imposes both a levy ceiling and a levy limit, in the state's terminology. The levy ceiling prohibits total property tax collections from exceeding 2.5 %of the fair market value of all taxed property, while the levy limit caps the annual increase in collections at 2.5 %plus new construction. "
  • "Alaska, limits annual revenue to $1,500 per resident. "
  • "Michigan adopted a rollback that prevents collections from growing faster than the inflation rate. "